On February 25, 2025, Keurig Dr Pepper Inc (KDP, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company reported net sales of $4.07 billion for Q4, slightly surpassing the analyst estimate of $4.02 billion. However, the GAAP diluted EPS for the quarter was a loss of $0.11, significantly below the estimated EPS of $0.55. On an adjusted basis, the EPS was $0.58, exceeding expectations.
Keurig Dr Pepper Inc (KDP, Financial) was formed in 2018 through the merger of Keurig Green Mountain Coffee and Dr Pepper Snapple. The company is a major player in the beverage industry, producing and distributing coffee systems and ready-to-drink beverages under well-known brands such as Keurig, Dr Pepper, Snapple, and Canada Dry. The company primarily operates in the U.S. and Canada, which account for 95% of its revenue.
For the full year 2024, Keurig Dr Pepper Inc (KDP, Financial) reported net sales of $15.35 billion, a 3.6% increase from the previous year. The company's performance was driven by strong momentum in U.S. Refreshment Beverages and International segments. However, the GAAP operating income decreased by 18.8% to $2.6 billion, primarily due to $718 million in goodwill and other intangible impairments and a $225 million accrual for upcoming distribution termination payments related to GHOST.
Despite challenges, Keurig Dr Pepper Inc (KDP, Financial) achieved an 8% growth in adjusted diluted EPS, marking a second consecutive year of acceleration. The company also reported a significant increase in operating cash flow by 67% to $2.2 billion and free cash flow by 82% to $1.7 billion. These achievements are crucial for the company as they support balanced capital allocation and reinvestment strategies.
| Metric | Q4 2024 | FY 2024 |
|---|---|---|
| Net Sales | $4.07 billion | $15.35 billion |
| GAAP Diluted EPS | $(0.11) | $1.05 |
| Adjusted Diluted EPS | $0.58 | $1.92 |
The adjusted operating income for the year increased by 9% to $4.0 billion, reflecting productivity savings and net sales growth, despite inflationary pressures and higher SG&A costs.
The U.S. Refreshment Beverages segment saw a 5.8% increase in net sales to $9.3 billion, driven by favorable net price realization and volume/mix growth. However, the U.S. Coffee segment experienced a 2.6% decline in net sales to $4.0 billion, impacted by unfavorable net price realization. The International segment reported a 6.8% increase in net sales to $2.1 billion, with strong volume/mix growth and favorable pricing.
"In 2024, we delivered strong financial performance consistent with our long-term algorithm and advanced our strategy to lay the groundwork for KDP’s next phase of growth. We gained market share through exciting innovation, marketing, and activation across our CSD and coffee brands, drove win-win outcomes with partner brands such as Electrolit and C4, and took bold action to extend our portfolio and route to market with the acquisition of GHOST and select territory expansions." - CEO Tim Cofer
Keurig Dr Pepper Inc (KDP, Financial) demonstrated resilience in 2024, achieving growth in key financial metrics despite significant impairments and challenging market conditions. The company's strategic initiatives, including acquisitions and market expansions, are expected to support continued growth. For 2025, KDP targets mid-single-digit net sales growth and high-single-digit adjusted EPS growth in constant currency, indicating confidence in its strategic direction and market position.
Explore the complete 8-K earnings release (here) from Keurig Dr Pepper Inc for further details.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.